Airtel share buy-back details post court order on Augere

NEW DELHI: Telecom major Bharti Airtel will announce details of its Rs 1,434 crore share buy-back scheme post Delhi High Court order on amalgamation of Augere Wireless Broadband with the company.

"The scheme of amalgamation of Augere Wireless Broadband India Private Limited, a wholly owned subsidiary with Bharti Airtel Limited, is under consideration for approval by the Hon'ble High Court of Delhi.

"Therefore, pursuant to the SEBI buy-back regulations all actions in the matter, including the public announcement, will be undertaken once the scheme has been disposed off," Airtel said in a regulatory statement.

The board of Bharti Airtel on April 27 approved the proposal to buyback the fully paid-up equity shares of face value of Rs 5 each of the company from the shareholders on a proportionate basis through a tender offer.

"The buy back shall be up to an aggregate amount not exceeding Rs 1,434 crore at a price of Rs 400 per equity share translating into approximately 3,58,50,000 equity shares, representing 0.90 per cent of the total paid up equity share capital of the Company," Airtel said in its earlier statement.

Airtel said that the board of the company has constituted the Committee of Directors to finalise other terms and appointment of intermediaries for the buy back and administer the buyback procedure.

Airtel posted 2.8 per cent jump in net profit to Rs 1,290 crore for March quarter despite over 25 per cent rise in depreciation and spectrum amortisation expenses.

The Sunil Mittal-led company had reported a net profit of Rs 1,255 crore in the January-March period of 2015-16.

Total revenue of the company rose 8.4 per cent to Rs 24,960 crore compared with Rs 23,016 crore last year.

For entire 2015-16, the company's net profit stood at Rs 5,484 crore whereas total revenues were to the tune of Rs 96,532 crore.

Shares of Airtel today closed at Rs 363.8 apiece, down by 2.28 per cent compared to previous, on BSE today.